China is encouraging companies to buy U.S. farm products, and will exclude them from added tariffs. Many crop prices are heading for their best week since at least June on optimism that Beijing and Washington are inching toward a deal. The year-long trade spat has undercut farmer profits and boosted debt levels in the U.S. as Chinese demand fell off.
There was evidence of fresh Chinese buying Friday as the U.S. government reported 204,000 tons of soybeans sold to the Asian nation, the first such announcement in more than two
“We are hopeful that this apparent gesture of goodwill by China leads not only to more sales of U.S. pork, but that it contributes to a resolution of U.S.-China trade restrictions,” said David Herring, a North Carolina hog farmer and president of trade group National Pork Producers Council.
The balance of the trade war hangs in how much domestic damage can be tolerated versus damage inflicted on an adversary. Food price inflation for China may be of a more urgent dilemma than the trade war at present. China is nowhere near being self sufficient in soy and the scourge of African swine flu has destroyed the domestic pig industry. Since pork is the staple protein for a significant proportion of the population that represents an issue not least as prices surge.Click HERE to subscribe to Fuller Treacy Money Back to top